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Lloyds Bank will pay dividends for the first time since 2008

Lloyds Banking Group has confirmed that it will resume paying dividends to shareholders for the first time since the financial crisis in 2008.

The announcement came as it reported full-year statutory profits of £1.8 billion, quadruple the same period last year.

The Treasury will net £130 million from its 24% stake as Lloyds’ recovery allows the bank to pay a dividend again.

Lloyds is now 23.9% state-owned after the government sold another parcel of shares in the bank earlier this week, raising £500 million

The government’s stake had been as high as 41% when it ploughed in £20 billion to prop the bank up in 2008.

Lloyds said it would pay a dividend of 0.75p per share, amounting to £535m to be split among the bank’s three million shareholders.

The bank added that it had made a further £700 million provision in the fourth quarter to settle cases arising from mis-sold payment protection insurance (PPI).

This was posted in Bdaily's Members' News section by Clare Burnett .